Bitcoin is a volatile currency. It many factor due to which it's price fluctuate but volatility is the main factor of tradition market by the Volatility Index (VIX). Bitcoin still does not generally accepted Index since cryptocurrency as an asset class is in its nascent stage.
Here's some reason behind bitcoin's price fluctuation.
1. Rate of adoption is obstruct by bad media news
New event always scare about cryptocurrency and they influence not to invent in such ponzi scheme. As we know that it is decentralized, it is also cause by geopolitical issue and event, the statement of governments of bitcoin is likely to be regulated. We have recently heard about bitcoin was going to banned its regulation in many country like South Korea, China, and many such country.
2. Perceive Value Fluctuation of Bitcoin.
One reason behind bitcoin price fluctuation against fiat currency is the perceived store of value versus the fiat currency. It is as similar as gold trade. It is governed by a design decision by the core technology's developer to limits its production to a fixed quantities, there is only 21 million bitcoin.
3. Large Holder of the currency.
It is also extently driven by holders of large production of the total outstanding float of the currency. Investors have invested above around $100 million in bitcoin holding.
4. Bad News About Security to react investors.
Bitcoin can also become more volatile when its security is exposed vulnerabilities is an effort to produce massive open source. Recently many issue came into talk about many bitcoin wallet hacked and many coin were stolen, this is one of the main factor of declining in price of bitcoin.
5. Bitcoin is in High Profile for its losses.
Bitcoin are made more volatility due to massive losses and ensuring news about the losses had double effect on volatility. The reduce approximately overall float of bitcoin.
Thank you for reading.